Marketing Management: by Philip Kotler, Kelvin Lane and Keller. and by Kelvin Lane Keller, Prmesvaran, Issac Jacob

 Marketing management
by
 Philip Kotler, kelvin lane and keller.
and
 Strategic brand management
by
 kelvin lane keller, prmesvaran, issac jacob
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from 11-1
the United States edition of Marketing Management, 14e.
Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships in ways that
benefit the organization and its
stakeholders.
Marketing management is the
art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
 CREATING VALUE – PRODUCT MANAGEMENT
 COMMUNICATING VALUE- BRAND MANAGEMENT
 DELIVERING VALUE- CUSTOMER MANAGEMENT AND

THEIR SATISFACTION
A product is anything that can be offered
to a market to satisfy a want or need,
including physical goods, services,
experiences, events, persons, places,
properties, organizations, information,
and ideas.
 Brand is something which distinguishes a
product from other products in the market.
 A product is an item which is ready for sale in
the market but a brand is something which
distinguishes a product from other products
in the market.
 A product what you need but a brand what
you want ( value ).
 A product can easily be copied but a brand
has a distinguished identity that can not be
copied.
 A product perform function but brand offers
value.
 A product may be tangible or intangible but a
brand is intangible.
 A product can be outdated after sometimes
but brand remains for ever
PRODUCT BRAND



 use of brand elements
 Improves brand value/brand eqity
 Branding is a process of endowing products
and services with the power of brands.
 It is all about creating differences between

products by giving it a name and other brand
elements to identify it.
 As well as what product does and why
consumer should care.
 Different components that identifies and
differentiate a brands
 A- Name
 B- logo
 C- Symbol
 d- Package design
 E- Jingle
 F- URL
 G- Character etc
 Can be based on people, places,abstract images or
things
 Through branding organizations
Create perceived differences amongst the

products.
 Develop loyal customer franchise.
 Create value that can translate to profits
Brand equity is the added value endowed on
products and services, which may be reflected
in the way consumers, think, feel, and act
with respect to the brand.
BRAND PROVIDE PROMISE , PROMISE TO
DELIVER,QUALITY,TRUST AND
EMOTIONAL BONDAGE AND
CREATES BRAND EQUITY THAT IS BRAND
VALUE
MIND SHARE AND HEART SHARE
 Brand equity- value of the brand in the
market place, in the eyes of customer
 High equity brand has high value in the
market place.
 Brand with high equity means that the
brand has ability to create some sort of
positive differential response in the
market place.
.
 That is your brand is-
 Easily recognizable when encountered in
advertising,
 one of the First one to be recalled and
 First one to be recommended
 Brand equity ultimately resides in the
mind of consumer.
 Value of the brand is made up of two
dimensions-
 A- brand awareness –how well known is
your brand.
 B- brand image – what does your brand
represents
 Both these factors leads to easily
recognisable and recalled brand .
 Brand equity explains why different outcomes
result from the marketing of a branded product
than if it were not branded.
 Brand equity provides a common denominator

for interpreting marketing strategies and
assessing value of a brand.
Brand Value is Intangible and NOT visible on
balance sheet.
 High brand equity/high brand value indirectly

affects in improving the revenue and
consequently profit.
 High brand value creates long-term

relationship with customers ,so loyal
customer and hence repeat purchase
 Brand loyalty provides predictability and
security of demand for the firm,
 And it creates barriers to entry that make it
difficult for other firms to enter the market.
 Loyalty also can translate into customer
willingness to pay a higher price often 20
percent to 25 percent more than competing
brands.
 Strategic brand management involves the
design and implementation of marketing
programs and activities to build, measure,
and manage brand equity.
 Brand managers are responsible to create
brands, high value brands, mega brands.
 Therefore they are responsible to do lot of

branding activities to communicate brand
value through various marketing strategies
 Identify the maker
 Simplify product handling
 Organize accounting
 Offer legal protection
 Signify quality
 Create barriers to entry
 Serve as a competitive advantage
 Secure price premiumSignify quality
 Improved perceptions  Larger margins
 More inelastic
of product
consumer response
performance  Greater trade
 Greater loyalty
cooperation
 Less vulnerability to  Increased marketing
competitive communications
marketing actions effectiveness
 Possible licensing
 Less vulnerability to
opportunities
crises
 LEGAL PROTECTION
The brand name can be protected through
registered trademarks;
manufacturing processes can be protected
through patents;
and packaging can be protected through
copyrights and proprietary designs.
These intellectual property rights ensure

that the firm can safely invest in the brand
and reap the benefits of a valuable asset.
choose the product again. 11-24
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
 Consumer
 • Industrial
 • Commodities
 • Specialties
 • Convenient
 • Value added
 • Impulse
 • By-products
11/21/21
the Levels Management,
United States edition of Marketing of product 14e. 25
 • Consumer products- non durable: targeted at end
users (e.g., breakfast cereals, bottled juices, yogurt),
durable -mixer washing machines
 • Industrial products: used in the production of other

goods (e.g., corn syrup and molasses for
 the baking industry)
 • Commodities: products with few, if any, perceived

differences between them (e.g., potatoes,
 cabbage, etc.)
11/21/21
 Specialty products: have highly unique
characteristics compared to other competing
products that make buyers to value them and make
a special effort to get them. Their purchase usually
 involves extensive comparisons with other goods
and lengthy information searches (e.g., fine
liquors,biologicals)
.
 • Convenience products: purchased frequently with
minimal effort (e.g., milk, eggs)
11/21/21
 Value-added products: save time in preparation and
consumption. Consumers are usually
 willing to pay a higher price for the convenience
(e.g., pre-cut fruits, pre-washed bagged
 salads, prepared meals, etc. once a day dosage form)
 • Impulse products: those for which the purchase is
stimulated by immediate sensory cues
 (e.g., the aroma of fresh baked bread or freshly
brewed coffee)
 • By-products: the result from the manufacture of
another product (e.g., cocoa butter)
11/21/21
 Quality – Objective and subjective
 • Safety – Food safety /drug safety
 • Availability – Location and time
 • Packaging – Functional and non-functional
roles
 • Labeling – Positioning, promotion,
information
11/21/21
 Demographics – Age, gender, marital status,
household size, education,
income/occupation, geographical location •
Psychographics –Attitudes, values and
interests
 Rapidly aging population, more women in
the workforce, more dual-income
households, less time to buy, prepare and eat
foods at home, increased concern for health,
food safety and environment 11-30
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
11/21/21
 Consumers’ Motivations and Attitudes
 • Nutrition / control of disease
 • Health
 • Enjoyment / free from side effects
 • Convenience
 • Safety
 • Compliance with reference groups’ norms
 • Environmental/political
11/21/21
 Brand line  Line extension
 Brand mix  Category
 Brand extension extension
 Sub-brand  Branded variants
 Parent brand  Licensed product
 Family brand
 A product line is a group of similar
products/services offered by a single firm

 Example: Product Line: Fresh Vegetables
Line length: Corn, carrots, cabbage,
pumpkins, etc.

 Line length is a function of a firm’s objectives
and resources!
11/21/21
 The product mix is the assortment of products
available from a particular firm
 Example for a farm store selling fresh produce &
cheese:
 Product mix width: fresh vegetables, fresh berries,
cheese
 Product mix length:
 Vegetables: corn, carrots, pumpkins, etc.
 • Berries: strawberries, raspberries and blueberries
 • Cheese: cow cheese, goat cheese, sheep cheese
Product mix depth: • Carrots: regular, pre-cut, baby
 SKU – STOCK KEEPING UNITS
11/21/21
 Consider your target market and your firm’s
strengths:
 • What products to produce and sell?
 • How many products to offer in a product
line?
 • What product mix (product lines) to offer?
 • What brand name to use?
11/21/21
 • Individual branding or family branding?
 • What logo to use?
 • Product bundling or product lining?
 • What positioning strategy to use?
 • What products to discontinue?
 • What new products to add?
11/21/21
 Types of New Products:
 • Real innovations eg new molecule

 • Adaptive replacements ampicillin to
amoxicillin
 • Me-too/imitative product -branded
generic
Beware: the rate of failure for new products
is high
11/21/21
 Differentiate
 Physical characteristics,
 availability, services,
 image, price, new uses,
 quality and customer satisfaction, etc.
 • Add Value – Cleaning, cooling, cooking,
combining, drying, pre-cutting, labeling,
packaging, distribution, etc.
11/21/21
 • Branding – Create a unique brand image
 • Packaging – Capitalize on packaging
possibilities
 • Use Powerful Names – Powerful names are
the key to recognition and recall
 Be creative!
11/21/21
In co-branding—also called dual branding or
brand bundling—two or more well-known
brands are combined into a joint product or
marketed together in some fashion.
Same company co branding eg Gillette shaving
system and gel.
Joint venture co branding eg city bank and jet
airways. Sun and msd.
Retail co branding eg pizza hut and KFC to
optimise space and profit
It creates brand equity for materials and parts
used in other branded products. Dupont –
corian, lycra fabric, Teflon coating
Figure 11.2 Five Product Levels
product levels
Core benefit level- is the fundamental need or
want that consumers satisfy by consuming the
product.
Generic product level is a basic version of the

product containing only those attributes
absolutely necessary for its functioning but with
no distinguishing features. Like no frill version
of the product that Adequately perform the
product function.
 Expected product level is a set of product
characteristics that buyers normally expect
and agree to when they purchase a
product.
Augmented product level includes
additional product attributes ,benefits that
distinguishes the product from
competitors.
Potential product level includes all the
augmentation and transformations that a
product might undergo in the future
Nivea crème
Core product Basic product
11/21/21 Levels of product 51

Expected product Augmented product

Potential product

ABBVIE’S BLOBCKBUSTER MOLECULE:
HUMIRA
Core : To treat Rheumatoid Arthritis
Basic: Packaging, Pen/syringe
Expected: Shelf life, relief
Augmented: Patient assistance, reminder,

usage instructions, savings
card
https://www.humira.com

Patient Assistance

PRODUCT LIFE CYCLE

Sales and
Profit Life Cycles
Plc growth,slump maturity pattern
• Eg small kitchen appliances

Common PLC Patterns:
Cycle-Recycle- eg sale of new drugs
Scalloped- discovery of new product
characteristics
Style, Fashion, and Fad Life Cycles
Introduction stage
• A period of slow growth as the product is introduced in
the market.
• Customers are innovators.
• Competitors are 0-2
• Profits are non existent because of heavy expenses of

product introduction.
• 1- to inform potential consumers.
• 2- induce product trial.
• 3- secure distribution in retail outlets.
• 4- high fixed cost and high vaiable costs
Growth phase
• A period of rapid market acceptance and
substantial profit improvement.
• Revenue – moderate
• Sales growth – rapid
• Costs- moderate
• Profits- increasing
• Customers- early adopters
• Competitors- many
• Distribution- expanding
Maturity stage
• A slow down in sales growth because the
product has achieved acceptance by most
potential buyers.
• Profits stabilize or decline because of
increased competition.
DECLINE STAGE
• Laggards customer
• Shift in consumer taste
• Increased competition
• Price cutting to retain sales
• Profit erosion

Marketing strategies at different stages of Product life
cycle
• Intrduction phase- create product awareness and

trial.
• Introduction of new products can be rewarding but
risky and expensive.
Pioneer advantages and drawbacks.
• Required to fix properly and profiling the product
strategies.
• To attract opinion leaders and early adopters.
• Basic model of product mix
• Basic product design, product offering basic benefits,
• pricing penetration/skimming, price charge cost plus
and distribution stable.
Growth stage- maximise market
share
Life cycle management,

Expand distribution.
Expand product line, product changes as much
possible,
Product offering-major benefits,
Pricing objective- to penetrate market,
Build awareness and interest in mass market.
Maturity stage- maximising profits while defending
market share.
life cycle management,
•product mix- offer full line,
•stable price and price to match or best
competitors,
•competitive distribution.
•Market modification, product modification,
marketing programme modification.
•Stress brand differences and benefits and
encourage brand switching.
Decline stage- reduce expenses and milk the
brand
Go selective phase out unprofitable outlets,

• life cycle management, harvest maximum
benefit ,
• offer main products instead of full line,
• eliminate weak products
• maximise profits,
•reduce price to retain market share.
•Harvesting and divesting

Marketing Management: by Philip Kotler, Kelvin Lane and Keller. and by Kelvin Lane Keller, Prmesvaran, Issac Jacob

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Marketing Management: by Philip Kotler, Kelvin Lane and Keller. and by Kelvin Lane Keller, Prmesvaran, Issac Jacob

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 Marketing management

 COMMUNICATING VALUE- BRAND MANAGEMENT

 DELIVERING VALUE- CUSTOMER MANAGEMENT AND

 Improves brand value/brand eqity

 It is all about creating differences between

Create perceived differences amongst the

 Develop loyal customer franchise.

 Create value that can translate to profits

 one of the First one to be recalled and

 First one to be recommended

 Brand equity provides a common denominator

 High brand equity/high brand value indirectly

 High brand value creates long-term

 Therefore they are responsible to do lot of

These intellectual property rights ensure

 • Industrial products: used in the production of other

 • Commodities: products with few, if any, perceived

 • Real innovations eg new molecule

Generic product level is a basic version of the

Core product Basic product

11/21/21 Levels of product 51

11/21/21 Levels of product 52

11/21/21 Levels of product 53

Core : To treat Rheumatoid Arthritis

Basic: Packaging, Pen/syringe

Expected: Shelf life, relief

Augmented: Patient assistance, reminder,

11/21/21 Levels of product 54

11/21/21 Levels of product 55

11/21/21 Levels of product 56

11/21/21 Levels of product 58

• Profits are non existent because of heavy expenses of

11/21/21 Levels of product 65

• Intrduction phase- create product awareness and

Life cycle management,

Go selective phase out unprofitable outlets,

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